The ECB’s decision on 2 February to raise interest rates again by 0.5 percentage points and to announce an equally large increase for March will go down in history as a grand misjudgement. Although it is already foreseeable that the price development in Germany and Europe will quickly approach normal values in the course of this year, …
In its latest monthly report, the German Bundesbank, formally a regional branch of the ECB, devoted a long essay to the relationship between money supply development and inflation. The result is meagre. Even the Frankfurter Allgemeine Zeitung (FAZ), which is not suspected of being particularly critical of the Deutsche Bundesbank, …
(first published in German in “Freitag”, 20 January)
Globalisation has become the talk of the town. People no longer want to be so dependent, many say. In future, one cannot simply rely on the efficiency gains of globalisation, say others. It must be possible to produce all important products at home, …
At the end of September, Federal Finance Minister Christian Lindner gave a remarkable diagnosis of the state of the German economy in a name article in Der Spiegel. He wrote: “In the Corona crisis we experienced a demand shock. Here the state replaced a lack of demand with tax money. …
